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Manage credit card debt the right way

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Recent studies show that 37% of Americans have less than $ 1,000 in their emergency savings, and 13% have no emergency savings at all.

CHARLOTTE, North Carolina – An alarming 53% of Americans are currently in credit card debt, with an average balance of around $ 5,000. But there is good news to report in that number: fewer people are taking on more debt, even with the ongoing COVID-19 pandemic.

That being said, debt can still really undermine financial health: recent studies show that 37% of Americans have less than $ 1,000 in emergency savings and 13% have no emergency savings. Credit card debt can be both good and bad; credit cards help create credit, but the downside to not paying it off is the high interest rates.

“You can save a lot of money”: How to lower the interest rate on your credit card

“We are also seeing an increase in the ‘buy now, pay later’ trend,” said Ted rossman with Bankrate.com. Bankrate experts study all kinds of financial trends, including debt trends.

“The 0% balance transfer cards were a bit gone, but they’re making a comeback,” he said.

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With good credit, you can get a personal bank loan consolidate debts and pay around 5% interest, which is less than usual; average credit card interest rates are around 16.2%. You can get an interest free card, but read the conditions carefully. If you don’t pay it back on time, a high interest rate will apply.

“You just need to be disciplined about it,” Rossman added.

The keyword: discipline. It’s fun to get into debt, but it’s much worse to try to get rid of it. It is painful and it takes a long time. You have options, start by figuring out how many and for how long.

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Contact Bill McGinty at [email protected] and follow him on Facebook.

WCNC Charlotte always asks “where’s the money?” If you need help contact the Defenders team by sending an email [email protected].

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